Massachusetts Enacts Far-Reaching Energy Legislation

The Green Communities Act, passed by the Massachusetts Legislature and signed into law on July 2, 2008, promises to “reduce electric bills, promote the development of renewable energy, and stimulate the clean energy industry that is taking root here in the Commonwealth,” according to Governor Deval Patrick.

The act includes a wide range of measures to promote energy conservation and renewable energy development. Among other things, it requires utilities to increase the share of renewables in their energy portfolios by 1% annually—double the current rate—to reach 25% renewable generation by 2030. Utilities will be required to enter into 10- or 15-year contracts with renewable-energy suppliers in order to facilitate suppliers’ acquisition of financing. The act also promotes conservation by tightening the state’s energy code and requiring utilities to invest in cost-effective efficiency measures before meeting growing demand with more generating capacity. The law promotes distributed power generation by increasing the cap for net metering from 60 kW to 2 MW and by allowing utilities to lease photovoltaic arrays to customers.